??? Why Banks' Outdated Cultures Are Stifling Fintech Progress

In today's edition, we’re taking a look at the banks trying to keep pace with innovation in the financial sector that's moving at lightspeed.

There are only two options on the table – innovate or get left behind. Join us as we find out why banks can't quite get out of their own way, despite having the desire to innovate.?

If you're new to us, join the 22,109 readers who rely on us for their updates. Subscribe here.

??? Why Banks' Outdated Cultures Are Stifling Fintech Progress

Most banks acknowledge digitalisation and innovation are do-or-die these days.

Anyone can see that customers, especially younger generations, demand friendly mobile experiences, modern payment options, and robust security.

Failure to meet these demands through new technologies and digital experiences, will leave banks isolated and outpaced by hungry fintechs and big tech giants.?

When you look under the hood, it's pretty clear that not many banks are actually putting innovative tech into action on a big scale for many reasons.

Background

• The banking sector is changing fast because of digitisation, and banks need to innovate to keep up.
• 80% of banking professionals see innovation as key, nearly half lack a clear plan for it.
• Smaller banks especially struggle to have an innovation roadmap.
• Most banks tend to go for small improvements rather than big changes.?
• Common barriers include limited resources, legacy systems, change management challenges, budget constraints, and lack of buy-in.

Today

• Banks focus on mobile banking, digital payments, updating core banking systems, and using big data.
• Innovation success metrics include improved operational efficiencies, customer satisfaction, reduced operational costs, solution scalability, and growth in customers/users.
• AI and ML technologies are of high interest to banks for better customer interactions and smooth operations.
• Banks need dedicated innovation teams, programs, centers of excellence.

What's Next

• Banks should consider partnering with tech vendors for expertise, resources, and industry knowledge
• Banks should align technology solutions with their business goals.
• Banks must develop clear metrics to measure impact and success of each innovation initiative.

Can legacy banks adapt to the digital scene? Or will they go extinct?

?? Bahrain's Central Bank sees surge in digital transactions , processing over $27.7 billion in bank transfers in 2023.

?? Al Ansari Exchange joins forces with Al Etihad Payments to launch Aani Instant Payment Platform for easy transactions across UAE

?? Qatar Central Bank reports surge in POS Transactions , valued at QR8.13 billion in March, which reflects rapid growth in digital payments.

?? QIIB Earns 'PCI-DSS - 4.0' international certification for best payment security and data protection standards in Qatar.

?? Bahrain's Central Bank boosts fintech ecosystem with 'Scale Box' and 'FinTech Bahrain' initiatives.

?? NBO and Zumr join forces to transform savings and lending with digital solutions and incentivised saving plans.

?? Tranglo simplifies remittance with instant transfers to 30+ e-wallets, available 24/7.

?? Thawani Technologies ranked 40th in Forbes Middle East's Top 50 Fintech Companies for 2024, the only Omani firm listed.

?? Mastercard and Equity Bank partner to facilitate safe cross-border money transfers from Kenya to 30 Countries.

?? 46% of financial institutions see risks outweighing benefits in Open Banking due to increased fraud.

?? The embedded finance market is expected to hit $228 billion by 2028.

?? KIKI World uses Web3 to enable co-creation of beauty products for better community participation.

?? Sui unveils SuiPlay0X1, a handheld gaming device integrated with Sui Blockchain, following Solana Saga.

?? Crypto.com , based in Dubai, receives full operational approval from VARA to launch exchange for institutional investors.

?? In 2023, the adoption of digital banking continued to rise, with a 13% increase in downloads of Android banking apps.

?? Bitcoin drops nearly 10%, with BTC briefly below $62,000 before bouncing back to around $64,000.

?? SC Ventures supports UK Sharia Compliant Algbra , with SkyNews reporting an investment of at least $10m.

?? Penny Software, based in Saudi Arabia, secures pre-Series A funding of undisclosed value from Iliad Partners, GSI, and Knollwood Investments.

?? ZeePay, a Ghanaian fintech, secures funding for expansion after handling over 10 million transactions valued at $3 billion in 2023.

?? Funding for Indian fintech startups jumps 59% in Q1 of CY2024.

Does the focus on embedded finance in B2B transactions make sense?: This report gives insights on the embedded finance in B2B market, with the chance to hit $120T annually. It highlights the importance of financing in the B2B market, as it isn't optional—it's essential for businesses to sustain operations, particularly for vital purchases that keep their mission-critical activities running smoothly. Also, we have to stick to ?innovative software that puts customers first in order to stand out in this fast growing market. Click here to read the full report.

This week on Couchonomics with Arjun, join me as I welcome Abdulla Almoayed, Founder & CEO of Tarabut for Episode 7 of Season 3. After the Eid break, we delve into the world of financial services. We discuss the state of open banking, the disruptive potential of BaaS, and Tarabut's growth plans in the coming years. Tune in here for a candid and informative conversation on the latest trends shaping the industry.

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

Today he sets 3 rules to make the most of your coffee.

Get the lowdown on getting the most out of your daily coffee fix with these 3 simple rules. Learn how to time your caffeine intake for maximum energy without messing with your sleep.

Did you know that caffeine counteracts the effects of adenosine, a neurotransmitter that promotes sleepiness?

It's MORE about maintaining wakefulness and LESS about boosting energy.

Now onto the 3 rules:

1. Delay your first coffee in the morning. Your body releases higher levels of cortisol in the morning, which blunts the effect of caffeine.

? Drink coffee intentionally rather than on autopilot.

2. Nap efficiently. If you're feeling fatigued, consider having a coffee and then promptly taking a 15-minute nap.

? Since caffeine takes some time to enter your bloodstream and reach the brain, when you awaken, your adenosine receptors are clear, and the caffeine's effects have just kicked in.

3. Time your last coffee. Caffeine has a half-life of five to six hours. This means that if you consume coffee at 4 pm, around half of it will still be in your system by 10 p.m.

? If caffeine is still circulating in your bloodstream, it can make it challenging to fall asleep.

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